Revenue from hotel tax continues to rise

Posted on January 27, 2014 by Sonoma Valley Sun

Sonoma last spring recorded its highest hotel room revenue ever for a second quarter, according to the most recent figures available from the Sonoma County Economic Development Board. The $804,583 total was 19 percent higher than the same period in 2012.

Propelled by the best fourth quarter number in its history, Sonoma’s Transient Occupancy Tax, a 10 percent surcharge on all overnight stays, totaled $2.63 million in 2012, a record high. The previous best was $2.55 million, in 2008.

The hot streak continued into 2013 with the largest first quarter increase, 43 percent compared to 2012, leading all county cities for the second quarter in a row.

Sonoma County in general is a red-hot destination. Countywide, “second quarter 2013 TOT revenues are the highest second quarter revenues since 2008, and in many cases the best that have been recorded to date,” reported Ben Stone, EDB executive director.

Historically, the third quarter of each year is the busiest for the hospitality industry, followed by the second, fourth and first quarters.

In Sonoma the room tax goes directly into the city’s general fund, where it accounts for about 22.5 percent of city revenue.

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